Note: This is post #18 in a weekly video series on basic microeconomics.
To solve economic problems we need to solve information and incentive problems. In this video, Alex Tabarrok looks at how Nobel Prize-winner Friedrich Hayek described the price system and its approach to solving the information problem.
In this video, we take a look at how Nobel Prize-winner Friedrich Hayek described the price system and its approach to solving the information problem.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Previous in series: The great economic problem
A merchant banker. A failing dairy farmer. A refugee from Communist China. One risked his savings. One risked his farm. One risked his life.
Why do their stories matter? Because how we view entrepreneurs - as greedy or altruistic, as virtuous or vicious - shapes the destinies of individuals and nations.
Visit the official Call of the Entrepreneur website for more information.